Assignment 3: Take Your Pick
· Introduction: We’d like you to design and develop strategy for a large, public company. And, we’d like you to do so using the themes within the two modules we’ve just completed: Risk Management and the International module. Essentially, we’d like to put you into the shoes of the CEO and design a few key strategies that would help grow earnings and reduce risk in the company’s operations.
· Let’s get a bit more specific. Pick a public company and examine what the company is doing now, both in terms of risk management global strategy. In particular, here’s what we recommend you do:
· Pull up a company’s annual report (10-K). Read the entire section titled “ Item 1” (includes items describing the general business) and “Item 1A” (also known as the risks section).
· Then, read the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.
· Next, examine the company’s international business situation. Sometimes, this information is located in a section called “Operating Segments” other times it is not. You might have to dig around for this info.
· Also, search the document (hitting CTRL+F usually does the trick) and enter keywords that include “derivatives” and “hedging.”
· What do you see? What is the business doing right now? THEN
a) Analyze the company’s existing risk management and international strategies.
Prescribe new strategies for the business based on what they are and are not doing now in these areas